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Polygon (POL)

POL
Smart Contract Platform / Ethereum Layer 2Proof of StakeLaunched 2019
Max Supply
10.00B
Circulating
9.90B
Launched
2019
Minute-Level Data From
2022-12-28

What it does

POL (formerly MATIC) is the native token of the Polygon ecosystem, an Ethereum-compatible scaling platform. Polygon PoS provides fast, low-cost transactions compatible with Ethereum, while the broader Polygon 2.0 vision connects multiple ZK-powered L2 chains through the AggLayer. POL is used for transaction fees, staking, and governance across the ecosystem.

How it works

Polygon PoS is a sidechain/commit chain that uses its own validator set (staking POL) to achieve fast finality, periodically submitting checkpoints to Ethereum mainnet for security. The Polygon 2.0 roadmap transitions toward a network of ZK-based L2 chains unified by the AggLayer, which aggregates ZK proofs across chains to enable seamless cross-chain transactions. MATIC migrated to POL in a 1:1 swap starting September 2024. POL has a 2% annual emission rate (1% to validators, 1% to a community treasury) allowing the ecosystem to fund development and incentivize validators who can secure multiple chains simultaneously.

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Problem it solves

Ethereum mainnet's high gas fees make many use cases economically unviable for everyday users. Polygon provides an Ethereum-compatible environment with fees often 100x lower than mainnet, enabling DeFi, payments, NFTs, and gaming at scale. The AggLayer vision aims to unify fragmented L2 liquidity, solving the cross-chain interoperability problem for the Ethereum scaling ecosystem.

Key Differentiator

The AggLayer cross-chain settlement layer enables multiple ZK L2 chains to share liquidity and interoperate atomically, positioning Polygon as the coordination layer for the entire Ethereum scaling ecosystem.

Tokenomics

Supply Model
Mildly inflationary (2% annual emission: 1% validators + 1% community treasury)
Staking
Validators stake POL; delegators can stake through validators; staking rewards approximately 4-8% APY
Burn Mechanism
Portion of transaction fees burned on Polygon PoS; overall slightly inflationary
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Ecosystem

Chain: Polygon PoS (own PoS chain with Ethereum checkpoints) + multiple Polygon CDK L2 chains
Depends on: Ethereum ecosystem health, ZK proof technology advancement, AggLayer adoption, partner chain launches
Influences: Polygon DeFi TVL (Aave on Polygon, QuickSwap), payment apps (Stripe, Robinhood integrations), Polymarket

Similar Projects

Sources

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Supply figures and project details are approximate and may not reflect the latest changes. Always verify from official sources before making decisions. This information is for educational purposes only β€” not financial advice.